BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces an investigation on behalf of Wirecard AG (“Wirecard,” the “Group,” or the “Company”) (OTC: WCAGY, WRCDF) investors concerning the Company and its officers’ possible violations of federal securities laws.
On June 18, 2020, the Company announced the need to further delay publication of its financial results and revealed that about €1.9 billion ($2.1 billion) in cash had gone missing. The Company also warned that loans up to €2 billion could be terminated. Additionally, the Company stated that Ernst & Young was unable to confirm the location of the cash in certain trust accounts and there was evidence that "spurious balance confirmations" had been provided.
On this news, the Company’s share price fell $69.74, or over 69%, to close at $29.90 per share on June 18, 2020.
On June 23, 2020, CNN reported that Wirecard’s former CEO, Markus Braun, was arrested “after a $2.1 billion hole exploded in [Wirecard’s] accounts.” The article further stated that “Munich prosecutors confirmed that Braun, Wirecard's former CEO, was arrested on suspicion of having inflated the digital payment company's balance sheet and sales through fake transactions in order to make it more attractive to investors and customers.”
On this news, the Company’s share price fell $4.85, or over 34%, to close at $11.41 on June 23, 2020, thereby injuring investors.
If you purchased Wirecard securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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